francis. president obama unvails his blueprint aiming at the wealthy and their success. lori: treasury secretary joins us on what the new taxes would do to this economy. melissa: lou dobbs on the president's plan to cap retirement savings. the government wants that too. lori: return to sender, the united states post office backtracking on cost savings plan. melissa: is the fed blowing a new housing bubble? ed pinto, chief credit officer at pinto, joins us with a warning call in today's wail westbound lane" -- today's "wall street journal" end-ed. the dow and s&p i hitting new intra-day highs. >> record, record, that is the day we are seeing here on wall street with the dow and s&p 5 # -- 500 hitting all time record high

intradays here. the dow at -- the nasdaq at a multiyear high. the nasdaq up 1%, not quitting, traded as high as 14825. we got the fed minutes. obviously, that was a big deal showing the fed is ready to continue money printing and bond buying helping to keep markets alive. that's been supporting this market, also, look here at tech joints doing well. as we said, the tech -- nasdaq up 1.8% and ibm shares on the rise, ubs raised ibm to a buy, cisco, ibm, hp, microsoft doing so well, and there they are for you. a lot of up arrows. melissa: great day for making money. nicole, thank you so much. lori: politics in play today. president obama up vails his budget taking aim at spending as well as retirement accounts.

itch -- rich edson on capitol hill for us. >> democrats applauded the president's budget, and republicans, as you imagine, say it's a tax and spend liberal document. look at the proposes here, specially focuses on the rich implementing the buffet rule. we've seen this, 30% effective tax rate on homes with incomes of $1 million or more. private equity and venture capital pay earned at the income tax rate known as carried interest. if you are an interest adviser, you pay interest rates rather than dividends. there's a cap on retirement, the that cannot exceed the value of $3 million. the president limited the number of itemized deductions, closes lee ductions for businesses, oil and gas, corporate jets, and the president' going to deficit reduction. >> but if we're serious about deficit reduction, these reforms have to go hand in hand with reforming the gas code by making

it more simple and fair so the wealthyist individuals and corporations cannot take advantage of loopholes and deductions that most americans don't get. that's the bottom line. >> now, here in the house, chairman dave camp of the ways and means committee has been working over the past coups years on a proposal to overall the tax code. we saturday down in an interview a short while ago asking what this moment. the president's limiting deductions for tax reform. >> tax reform is bigger than just loopholes. i mean, you know, if you do a piecemeal approach, you're not getting the strong economic growth that the country needs to see, and it really is about families and jobs and prosperity and how do people get to work and how do they get a higher benefit or get their salary increased or wages increased? that's what we need to get going again. >> he acknowledged the president for putting a place holder for corporate tax reform in the budget, but acknowledges the

democrats and republicans are incredibly far apart here with republicans demanding tax reform is revenue neutral. any tax deductions you eliminate, take it to lower rates, whereas democrats now president president's budget ask for nearly $600 billion in new revenue to go to deficit reduction or other spending. back to you. lori: rich, thank you so much. melissa: is the white house waging war on money? the president proposing capping pretax retirement contributions at $3 manager, taxes carried interest like ordinary income, but will this hurt economic growth? no one better to ask than the economist at the university of maryland and former assistant secretary at the treasury department. thanks for joining us. what do you think? is it too harsh to call it a "war on money"? >> you know, i think that's pretty spot on. it's a war on savings and it's a war on people's future money; right? you want to address the long

term deficit, we have to save more, and the president says if you save too much, i'm going to penalize you. that's wrong. we want more savings, and that funds the future investments. >> explain that relationship to the ordinary person because they don't think of savings as funding the receive sit. >> oh, absolutely, absolutely. the money saved today, anything not spent, those are the resources available for investments by companies and by individuals starting a new business; right? they have to have funding somewhere and that's the savings of other people. if we don't, as a nation, save enough, we bring in resources from other countries, china, from other countries willing to lend money, and that's what we've been doing and that's why we have a massive debt because we don't save enough. the government doesn't save enough, and that's why it's critically important for us to have higher national savings. melissa: liberals say that, you know, when the government seizes the money through taxing, they do a good job of spending it and fuel demand out there by spending that money.

what do you think about that? >> you know, that's one of the things that looks good in the textbooks, and then you look at real world, we have four years of records on this, the green energy investment, bankers, bankrupt, the train to nowhere in california. you know, there's some government spending programs that make sense; right? highways, roads, bridges, national defense, absolutely, but i think this administration has a four-year record of being a poor steward of the public money. melissa: is this just posturing? people say who has more than $3 million in the retirement account any way? it's a tiny fraction of people and revenue for them. >> yeah, it's to some extempt, symbolic, going after the rich. you know, the message is sends is exactly what chairman camp said in the previous segment; right? it's piecemeal. it's going in the wrong direction on tax reform, and it's not helpful for the big tax reform effort that we really do need. melissa: bottom line is that you tax what you want to discourage.

what message are they sending here? they want to discourage savings, maybe they want to discourage private equity. talking about carried interest and taxing that as ordinary income, they want to tax that kind of capital being put to work in that way. is it wrong to discourage that? >> tough question. the financial system has been impaired the last couple years, and, look, it's wall street's fault, but we want the financial system to direct resources to the right directions that we invest well as a nation, and if you tax that activity, as you said, less. there are impacts of that. melissa: the language used, and i heard it all morning already is you give tax breaks to the wealthy and finance that, pay for it by cutting desperately needed programs. what do you think about that language? >> you know, if the administration had a record of directing government spending in the right places and not wasting public money, that would make sense. if they say, look, we are lacer

focused on spending wisely, i -- you know, it's hard for them to make that case. melissa: thanks for coming on. >> okay, thank you. lori: perhaps something you didn't know about the budget. you can buy a copy for yourself! talk about -- melissa: how exciting. lori: it's pool side reading. they will selling all four volumes of the budget for $218. now, that's rich. now, why pay for it when it's free? of course, each member of congress gets their own hand delivered copy, but all 244 pages of budget are free online. happy reading. melissa: i want the printed version to read on the plane. what a delight. the stock falling off they fired the executive responsible for leaking information is next. lori: post service backtracking on the plan to cut delivery. who are they blaming? melissa: war on wealthy. lou dobbs weighs in on president obama's budget and what it could mean for you. lori: all that glitter, look at

the trade on metals -- check a look? wow. take a look. the fat finger hit the fed minutes by accident. we have the minutes, staying, of course, as expected, but gold down $28 an ounce. we're back after this. ♪ @ all stations come over to mission a for a final go.

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♪ lori: time to make money with charles payne adding refreshing profits. melissa: i love refreshing products. >> soda stream. guys, i think we've talked about it before. i'm going for a home run with this. i mean, i'm really swinging for the fences with this. this company, by the way, it's only been public a couple years, but been around since 1903, started out in london. it was in the upper class people and royal family. that's why you had it before anybody else. lori: oh, please. >> i like it. it's done very, very well.

i want to point out the pros and cons. the cons is they missed two of the last three quarters. lori: it's expensive. >> the stock moved already, relatively light volume, but i like the next fiscal year, earnings estimates, every two to three weeks goes up. the street knows they are doing good. the peg rich owe is low. the wild card between this is the short position. 55% short. that is mind boggling. that is absolutely mind boggling. melissa: a better stock, traders love the data in it. >> one trick pony, shouldn't be a stand alone company, that stuff, which is legitimate, but they reinvent themselves. i can't wait. we bought the thing years ago and stopped using it, then started using it, stopped using it -- melissa: i thought you meant the stock, but you mean soda stream. >> absolutely. we'll use it this summer. lori: turning point for soda

stream, showing up in stores now, almost in -- they expanded where their -- best part of the marketing? >> it's a global play started in the u.k. and growing like crazy. trif why because i know you like the trivia stuff. the first two flavored waters in the 1920s were? >> cream soda? >> sherry cider red and sac pir -- saspirilla. melissa: i was not close, more flavors i've ever heard of or guess. had no idea. >> ever watch the audrey movies? i might be dating yourself. melissa: thank you, charles, fantastic on that trivia, no idea what you talked about. >> she was close with cream. lori: thank you, appreciate that. updating you on the markets. nicole is on the floor of the

new york stock exchange. how are herbal life and sketchers doing after yesterday's wild session with the guys? >> right. we had a check in on here right now, herbal life down, and for the weekst that's what we've been seeing. herbal life down 6%, sketchers up 7% this week. taught about the possibility whether herbal list is listed here, that's not the case. herbal life is looking closely and working on securing a new auditor now that kpmg has alleged insider trading from one of the former partners. we'll continue to follow the story here, and both of these names, obviously, now, no longer have kpmg. jcpenney, week to date, 10%. it's continuing to the losses, new lows for jcpenney, and new ceo, which was the old ceo, called him up, save us, kick ron johnson out. they are looking back to school saying that's the saving grace. lori: thank you, nicole.

melissa: grain prices falling at the u.s. department of agriculture forecastedded greater than expected global supplies. sandra smith has a look from the pits of the cme in today's trade. sandra? >> hi, melissa. this is a big report. not onlyygivings a reflect of what's happening in the u.s. global economy, but for our economy, the number one biggest grower and exporter of corn in the world. we live off this stuff, but it affects our stocks. the farm equipment stocks, fertilizers, seed producers, but when you look at corn prices, originally a pop after the report this morning from the usda, but now corn prices have turned lower. world corn supplies will be well above original estimates by the ebb of this crop year. we're not using and consuming as much corn, reflection of the still weaker global economy. soybean stocks also much higher than forecasted, above analysts' forecast. soybean dropping, wheat prices

dropping on bigger stockpiles projected at the end of the year. using less grains across the board. ethanol consumption down. the need for the grains for feed was down, so, again p, reflecting weaker global economy. charles payne is on this onings could be good for the meat producers meaning the profit margins increase when you got lower feed cooses, and that's what happens when the grain prices drop, and that's what's happening now. mel liz is a, back to you. melissa: thank you so much. so much for that idea. the u.s. postal service reversing the plan to end saturday mail delivery. in a statement, the usps says, quote, they believe congress left with no choice but to delay implementation of the curtailed delivery schedule at this time. the financially strapped service lost 16 billion dollars last year and said they hope five day delivery would save $28 billion annually. the board is now -- sorry, $2 billion.

i need to get my eyes checked. $28 billion would be awesome. the board is directing managers to seek to reopen negotiations with postal unions to lower total work force costs. postmaster general, patrick, came up with map after plan to save money and cut costs and is thwarted by congress. he has to be frustrated. lori: not even one step forward, two steps back. that's like 12 steps back. get saturday delivery still. melissa: there you go. you work and save, but is the white house's budget telling you how much you need to retire? lori: our friend, lou dobbs, joins us next as the president takes aim at wealth yi and savvy investors. melissa: look how at how the dollar is faring today. the dollar is stronger against the euro and in japan as well, weaker in canada. we'll be right back. ♪

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>> 23 minutes past the hour with

your fox news minute. in the gun control battle, a bipartisan compromise is now on the table. republican senator of pennsylvania and democrat senator of west virginia introducing a bill to expand background checks to include most firearm sales incoming those at gun shows and op line. that bill is not as strict as president obama's gun control proposal, but could have support to pass the senate. south korean military on high alert today. the country raising its threat levels to vital. that's considered one step below wartime level. this amid concerns that north korea's planning to launch a mid range missile any time soon. in china, nine deaths confirmedded from the h7n9 flu virus out of a 33 total confirmed cases. that is nine deaths out of 33. chinese police detained ten people for spreading rumors about the virus. so far, all cases have been in eastern china. those are the cases. now back to melissa and lori.

ladies? melissa: thank you. president obama unvailing the budget proposal to bring in an extra $680 billion in new tax revenue. what would that do to the struggling economy? time now for lou dobbs. >> i love the way you say that. this budget is not as advertised. it is a sad statement that this president neither has the capacity rhetorically, veerbly, to define a vision for america's future; nor the capacity or the wish to lay out a blueprint for the future because this is not it. it is, again, another wasted, squandered opportunity by the president to do so. he comes at us with higher taxes, another budget that does not balance within the foreseeable future, if that is

not an oxy moron these days. it is a sad, sad document, and i think that mitch mcconnell, the senate minority leader, said it really best. it's just another wish list of left wing ideas that, frankly, fade into irrelevance, impotence, and disappointment. lori: but he ticked off democrats with proposes cuts to entitlements and planning dipper with republicans. is that him at least trying to reignite negotiations? he's maybe willing to compromise a little bit? >> ha-ha -- lori: or are you just ticked off as other democrats? >> i'm not ticked off. i have no emotional legacy in this. that's his problem and that of the left. delightful he's having dinner with republicans, congressional leaders from the republican party rather than another, you know, overly expensive and

really unseemly evening with all sorts of entertainers and the celebrities while americans cannot go into the white house on a tour. i'm divided. i have mixed emotions, given the mixed agenda the president. this budget is really a defining moment for the president, however. you'll hear a great deal of chained cpi, really the substance of his entitlement reform. it's not reform at all. it is simply another way to reduce over a period of a decade about $130 billion. it doesn't amount to anything, and it does amount to a problem for a lot of people who depend on social security for their living. that's a shame because the real entitlement program is not social security, and the first social security problems can be

reformed, dealt with intelligently, rationally with a minor effect of those who depend upon those checks. the problem is medicare, medicaid, and the president, again, evades the real issue, the real important discussion, than the need for a solution and goes to the nonsense. again, he is very close to being that lame duck president, and the closer he gets to this moment, which this may be that moment, the tipping point, this may be the time we find out just how annoying the obama administration can be because we're going to hear the rhetoric. we're going to watch the bounding steps on stages whether he blabbers, but does not communicate nor lead and to be irrelevant as a lame duck is all the more burdensome and tiresome. lori: what's with second term presidents? all a bust. >> certainly, well, never mind, we can -- i won't quibble with your "what is it with the," the

plural is appropriate. lori: more articulate; right? melissa: lou, thank you so much. see lou here and 7 and 10 p.m. eastern as well. tonight, catch senator ted cruz from texas on the president's budget to immigration to gun control. >> he's quite something. he's a freshman senator who's really taking on the leadership of the republican party for the first time. the republicans have the opportunity to provide real national leadership. they have three personalities, three folks, and that is ted cruz, senator marco rubio, and senator rand paul, three outstanding individuals. lori: lou dobbs friendly too. we'll tune in. >> a super deal. lori: thank you, sir. is there another housing bubble? ed pinto has a warning to the fed, that's next. melissa: the great economic

philosopher, p. diddy, summed it up, but who knew he was talking about the exports. we'll explain straight ahead. ♪ . ..

lori: okay, we do have breaking news. u.s. defense secretary, chuck hagel, that north korea is skating close to a very close line with its bellicose rhetoric on nuclear arms. melissa: stocks now as we do every 15 minutes let's head to the new york stock exchange with nicole petallides is standing by. the dow posted its biggest

gain in over a month, nicole. >> that's right. it is an exciting day on wall street. you talk about big gains for the dow and for the nasdaq and s&p 500. look over here at pfizer, dow component pfizer which is doing so well. it is up 2.7%. this as they're getting approval from a therapy designation from the fda to treat patients with breast cancer. it is an oral medicine the mid-stage trials a have gone so well they will move it into a third stage trial. this is good news for pfizer shareholders. the company is trying to extend its cancer portfolio and benefit of course canner patients themselves. back to you. lori: thank you, nicole. is this the real deal. home prices are up 3% over the last year. my next guest says this is the result of a normal housing rory -- recovery. ed pinto, former fannie mae chief credit officer. ed, thanks for joining us. >> pleasure, thank you. lori: in an opinion piece in

today's "wall street journal" you warn what potentially could be another housing bubble. go on. >> well the problem is, yes, house prices are up 8% but incomes are pretty flat. the only way house prices can go up if incomes are flat for interest rates to go down and thanks to the fed that is exactly what happened over the last year. so the monthly payment that people are making for these more expensive houses is identical to the monthly payment it was a year ago except they're paying 8% more. this is not a healthy recovery. and when the fed has to unwind this, they're creating you know, potential bubbles in the stock market, bond market and housing. when they have to eventually unwind this it will not end well. as i indicated, if interest rates go up to just 6%, which is a pretty benign number given the last 20, 30 years from today's 3.5, either incomes have to go up by a third or house prices have to come down by a quarter, or, you have to loosen lending standards and we've already been down that road. what happens when you losen

lending standards? there is not a good exit here. lori: we certainly have been down this road before and you make a great argument but as you know the news headlines of late is concern over the stock market bubble being created by the wealth effect that the fed created and it hasn't been along lines of the housing market. is that troublesome to you, or do you just see parallels in this? >> i see parallels. i think it is this wealth effect was utilized to excess back in the early out years by the fed when they by design tried to pump up the housing market in the early ought years. they want to keep a wealth effect for people to tap equity. you in this case what they're hoping to do is reduce the amount of underwater mortgages. they want to give people the appearance or feeling they have got more money in equity so they might move up to a larger house but again it's an illusion because

they're doing it with the same monthly payment. they're really doing this like automobile lending where you walk in and you don't ask the price of the car. you say what is the monthly payment. they're doing same thing in housing. it just doesn't make any sense. lori: so begs the question, how could the fed navigate an orderly wipeddown should interest rates come up -- winddown should interest rates come up as they will? should they take their foot off the gas pedal as unemployment goes down to 6 1/2%? what do you think?. >> i think the fed has to back off on pedals they're using. they're using quantitative easing. they're buying u.s. treasurys and agency securities every month, 85 billion. they're keeping interest rates very low. they're punishing savers and enabling not only the stock market and bond market and housing market, they're enabling congress to borrow a trillion dollars every year in new debt and pay $8 billion. the current treasury rate,

that they pay on average going forward is .8 of 1%. do the math on a trillion dollars. it only costs congress $8 billion to put on another trillion dollars of debt. they are promoting all kinds of bad practices here. they should just start backing off. lori: we certainly appreciate your warning. ed pinto, once again we were listening carefully. we'll catch up with you again soon. this is something worth following up on indeed. >> thank you. bye now. melissa: cash is king over the past five years. the amount of cash in circulation surged 42% to more than $1.1 trillion. that is according to the san francisco fed. that translates to $3500 per person in the u.s. but the fed's report suggests that cash transactions have tumbled as more consumers turned to credit cards. so where is all the cash going? under the mattress? not quite. it is heading overseas. p100 bills are one of the country's leading exports. the biggest growth in cash that is in circulation has

come from $100 bills and roughly 2/3 of them are scattered all around the world. lori: hmmm, didn't realize that. nice tidbit. after the herbalife auditor resigns, charlie gasparino is here next. melissa: a huge day for the markets. new all-time intraday highs for the dow and the s&p. we're back on the floor of the new york stock exchange for trader reaction. ♪ my mantra?

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ask your doctor about the only underarm low t treatment, axiron. >> i'm cheryl casone with your fox business brief. the latest minutes from the federal reserve sparking a rally on wall street today. both the dow and s&p 500 hitting new record highs. right now the dow is higher by 138 points. homebuilder taylor morrison's stock is jumping after its new york stock exchange debut. the company told $28.6 million shares at $22 each, the top of the expected range. taylor morrison is one of the largest public homebuilders in america. a new york federal courts of appeals says that the securities & exchange commission can not be held responsible for failing to expose bernie madoff's ponzi scheme. the court noted the sec missed many opportunities to uncover madoff's multibillion-dollar scheme. this uphold as lower court ruling row joking a

lawsuit -- rejecting a lawsuit brought on by madoff investors. he is pled guilty in the 09 and is serving a 150 years sentence. that latest from fox business, giving you the power to prosper

lori: charlie gasparino is here. he last a list of reasons why he thinks it is probably better to keep your money under a mattress than herbalife stock. >> i usually don't give investment tips. the only reason i'm doing it with this stock because of all the taint around it right now. we should point out that doesn't mean the company is a pyramid scheme as bill ackman says it is, but if you're an investor, what we try to do is give some, dispense some knowledge for investors. i will give four reasons why you should really stay away from the stock right now. put it in, maybe mattress was a little bit of hyperbole. melissa: it is a euphemism. we know what you're getting at. >> just be, i don't know, buy news corp, whatever.

buy something else. here's why. and i'll tell you, this is stock like i said, a lot of trading going on, people want to go short, long, you ought to see my twitter page. i would just stay away. listen, as the details of this insider trading case emerge this stock will be really volatile. it may trade down depending on what those details are because somehow mentioned with the word insider trading even though the company itself, herbalife is not directly involved, its stock is involved, one reason to stay away from it, stock traders are notorious for hitting the button when they see the word herbalife next to the word insider trading even if they have nothing to do with each other. that is one reason. the second reason we should point out that herbalife will have to deal with regulators about its past financial statements. remember as part of this whole thing with kpm. about, there was an order, senior auditor who gave tips to somebody who traded on herbalife stock. kpmg essentially nullified three years worth of financials, ought ted

financial statements for herbalife. they're going to have to deal with regulators on that. that will be a time-consuming, insane process, again. the stock will trade volatile on that process. number three, herbalife what sources are telling us close to the company, still hasn't retain ad new auditor. i don't know why that is. maybe they have to, you know, putting it out for bid and will take three days but you would think a company that does not have financial results would move on this quickly. we're told we'll try to move on it quickly. that is something, when they don't have the auditor that pose as problem. could they be delisted by the new york stock exchange, because there is no audit or audited financial results? theoretically yes. but as we reported yesterday, probably not. if you get a delisting notice there is sort of market moving data that will come out, information that will come out that is not good for the stock. we should point out one other thing, and i kept hitting on this yesterday and when you talk to sources close to this whole mess

they will tell you that this guy gave, the kpmg auditor gave information to a third party who i believe bought and sold, we don't know when he bought and sold. if that information that he gave caused him to sell more recently, well that would back up bill ackman's claim that the company has problems. that information will come out and that's another reason to stay away from the stock because, guess what? if he shorted the stock, then shares are going down. that means that the latest information that came out about herbalife where the auditor was, you know, directly involved, was a senior auditor is dispensing information that told, you know, whoever this third person is, to sell, sold, stay away from the stock. that will come out. so that's my little bit of advice. i'm not a financial advisor. i am not a cpa or cfa, whatever they call them. lori: we're taking it with a grain of salt. >> i wouldn't go that far. in your broad investment decisions there are lots of things you could put your

money in. i don't know, maybe this isn't it if you're the average guy. we deal with the average person. lori: how nice for the guy to apologize from kpmg. >> bernie madoff apologized. i don't think he -- did bernie madoff apologize? i can't remember. this guy is not in the bernie madoff category. i'm being kind of more hyperbole. you apologize after three years of doing it? doesn't make any sense. this guy he is a senior auditor. you would think he has, --. lori: a clue? >> mba maybe, i don't know, accounting degree where he knows if you're a certified public accountant there are obviously certain rules of the road which he violated, and clearly violated. now you're apologizing? sounds stupid to me. melissa: there you go. lori: agreed. charlie, thank you, sir. melissa: we have breaking news right now. wal-mart vice president jerry murray leaving the company. this is according to bloom berg. the former vp of finance and logistics after he wrote an

internal e-mail back in february that said wal-mart sales for the month to date, quote, a total disaster. a wal-mart spokesman said murray's departure was quote, his decision. you can see the stock there, trading down. all right, as we do every 15 minutes let's check the markets. gray wolf execution partner, chief technical analyst, mark newton is on the floor of the new york stock exchange. and mark, what's behind all the existment today in your opinion? >> well, a couple of things to change just in the last couple days that are interesting and important to highlight. one, that you started to see a few signs of china and also commodities starting to bottom out. yesterday we saw a big move in some of the industrial metals. we've seen some defensive sectors start to stall out. these are some of the year's biggest outperformers. this year is obviously mostly defensively led, looking at health care, looking at staples and looking at utilities. we're starting to see signs of staples and utilities starting to stall. we're seeing a sign that the market could push higher.

the market has been incredibly resilient. a lot of it is u.s. and japan. we haven't seen extent of deterioration in europe or a lot of emerging markets. when you start to see signs now the that emerging markets are starting to stablize and turn up, that is certainly a little bit of reason for encouragement. melissa: do you think it goes higher from here? >> i think in the short term over the next couple weeks we can stretch higher. momentum is still quite positive. we overbought. there are number of concerns. this year should play out like years in the past, europe peaks and u.s. could follow. we'll get some sort of a pullback between may and july time frame. melissa: mark newton. thanks for coming on. >> thank you. lori: check the calendar it is april. good luck telling folks out west. melissa: look at that. lori: latest weather across the country. >> appeal teaming up with its newest iphone. lori: there are winners and losers that is what make as market. we'll show you some and we'll be right back

lori: looking live live outside our studios, down sixth avenue, what a stunning day. 80 degrees out there here in new york city. the rest of the country though, not nearly as lucky. i have to say we deserve it. it has been a brutal winter. melissa: these four people don't deserve it. lori: right, right. denver, there is sking in denver and really, really good sking. this is good for the local economy. melissa: okay. lori: six 1/2 inches of snow. came with a shocking temperature drop. overnight temps dipping to a record low nine degrees. that severe weather moving eastward. thunderstorms from the ohio valley to mississippi valley. deep south have potential to

produce damaging wind and large hail. tornados still a possibility. melissa: so which two of the biggest names in technology are getting a little bit cozier? sources tell "the wall street journal" that yahoo! and apple are looking for case to deepen the participate but how? details is shibani joshi with joshi on tech. >> hi, there, melissa. there are "friends and enemies". they're tech french any mys you could say. yahoo! and apple are working together whether or not you realize it. yahoo! has been given prominent space on various apple devices including the iphone and ipad. "the wall street journal" is reporting that the two are tossing around ideas to integrate more. it makes a lot of sense. they have one thing in common. they both hate google. it makes sense for them to come up with creative ideas how to kick google out of the picture. at the heart of the talks is according to "the wall street journal" is getting more access to yahoo! data onto the devices.

so that specifically, theory, can access it. siri goes around google. so it makes a lot of sense to get access to data from yahoo! while already finance and weather data has come preloaded on the iphone. what they're talking about is expansion into things like sports stats and news. yahoo! is making crucial inroads in this arena. you know this is an important platform to help the company drive traffic. that is the number one priority of ceo marisa meyer. the holy gral for this company, for yahoo!, would be the default search provider on the iphone and the ipad. but i hate to say it, melissa, i don't think it will ever happen. it is a pipe-dream because if you will remember, yahoo! search is powered by bing. they're all interrelated. they're all integrate the. we bet apple would never want to go for that. bing powered search from yahoo!. melissa: that's a great point. i wonder, iphone is cool. always trying to maintain

its cool. yahoo! cool? >> with marisa meyer is trying to change the tone and look and appearance. melissa: is it working? >> the stock has been up since she has taken over. we're waiting for these action items, these action plans to show what her strategy is. that sounds like a pretty good deal to me and something that investors can cheer about. if you're getting on more iphones and ipads that's exactly where you want to be, on the hottest device out there. melissa: it is good for them. good for yahoo!. not i thought greatest fit for iphone but we'll see what happens. shibani joshi, thanks very much. coming up tonight on "money" it is bitcoin bow nanzsa. last week we covered bitcoins, if you don't know who you are. if you listened to the guest you would have nearly doubled your money. watch the 5:00 p.m. show and double your value. bitcoin jumped to over $250 today. we're going to tackle the issue again tonight at 5:00

p.m. eastern on fox business, just in case you care about making money. if you do, watch. if you don't, don't worry about it. lori: i think i will have to watch. melissa: i think you have to watch. lori: that was quite a sell. melissa: yeah. lori: coming up next hour we're not down with markets now quite yet. former cbo director douglas holtz-eakin predicted the president's budget would be full of gimmicks. did that change after he read it? he is next with tracy byrnes and ashley webster. don't miss it. we went out and asked people a simple question:

how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

tracy: good afternoon, i'm tracy byrnes. ashley: i'm ashley webster. targeting success. the president's budget aims to boost taxes on the wealthy and restart fiscal talks with republicans. former congressional budget office douglas holtz-eakin, he says the plan is full of gimmicks and he will be here within moment. >> dow 15,000 is within reach.

the stocks are surging to new records. s&p 500 gaining more than 1%. chad morgan lander will tell us how to play this record market now. ashley: we were supposed to bring you fed minutes this hour but they were mistakenly released to 24 hours ago to congressional staffers and others. it is raising questions whether insiders have an unfair advantage over every day investors. we'll take a look at that question ahead. with two hours to go, stocks are holding onto big gains. nicole petallides at the new york stock exchange. >> that's right, ashley and tracy, we're seeing a winning day on wall street, a record-setting day on wall street so let's take a look what is going on. when you talk about the dow, the nasdaq and the s&p you see up arrows. all three are setting some sort of record. the dow and s&p are setting all-time record intraday highs. and the nasdaq up nearly 2% on the day, up 1.7% setting multiyear highs for that one. look at dow jones

industrials in particular and the s&p 500. we're watching different charts to take a close look. the record closing high which was set on april 9th, is 14,673. we're taking that out, right assuming everything stays. the s&p 500 record closing high there is 1570. so likely to take that out barring anything changing. we have can't leave out the fact many names on the dow jones industrial average are actually hitting multiyear highs as well. the dow components, names like pfizer and three m, also travelers and home depot and disney and united technologies. those are some names that are hitting multiyear highs as well. looking at those and how they're faring. travelers has since pulled back. ashley: the beat goes on. nicole, thank you very much. tracy: president obama's 2014 budget takes aim at social security, medicare and the savings of successful americans. senior washington correspondent peter barnes, bolted to the camera for us, is at the white house with more. hey, peter, thanks for hustling over.

>> hey, tracy, that's right. got out of a briefing with senior administration firms. est let's talk about the budget proposal the president dropped today. $3.77 trillion for spending in 2014 that would be 2 1/2% increase over spending in 2013. the administration projecting a $744 billion deficit in sfourt fourth under this budget. -- 2014. the white house says this budget will offer $1.8 trillion in deficit reduction over the next 10 years. it incorporates the last offer that the president put on the table with house speaker boehner in their deficit reduction talks last year. the budget it says, this budget would replace the sequester according to the white house. that kicked in on march 1st with 1.1 trillion or so in different spending cuts over 10 years. including this new cpi calculate for social security as you just mentioned. it would reduce the

inflation in social security, adjustments every year, saving about 130 billion and this budget would also save money in medicare by means testing medicare, requiring higher medicare premiums for people, retirees making over $170,000 a year. the budget would also raise nearly $700 billion over 10 years in new tax revenues, mainly by limiting tax deductions for families that make 250,000 or more a year. we've seen that before from the president. and by adopting the "buffett rule", which would require wealthy taxpayers to pay 30% taxes at a minimum on their income over a million dollars. here was the president earlier this morning. >> building new roads and bridges, educating our children from the youngest age, helping more families afford college. making sure that hard work pays. these are things that should not be partisan, they should not be controversial. we need to make them happen. my budget makes these

investments to grow our economy and create jobs and it does so without adding a dime to our deficits. >> the president referring there so some new programs, for example, for preschool education, for, $50 billion in infrastructure spending in year one. he does propose higher taxes on things like cigarettes, up about a dollar a pack to help pay for that. higher estate taxes and other taxes. republicans right now parsing through all this on capitol hill say from what they see with new spending and new taxes they're not sure how much deficit reduction is actually in this budget. tracy and ashley, back to you. tracy: peter barnes, thank you. i know you will continue to go through it and get more details. man, we're taxing the left and right. ashley: we are. according to my next guest these are based on rosy economic projections and budget gimmicks.

former head of cbo and president of american action for rum, douglas holtz-eakin. we heard the president said the budget will grow the economy and create jobs and hard work pays. what is your take on it? >> that was his 2009 budget i think. or was that his 2010? 2011? 2012? look, if you put aside the social security proposal which there should be real discussion, this is very similar to his previous budgets. the economic assumptions aring a press sieve. his budget has the economy growing more rapidly in the near term than does cbo. despite that has lower interest rates. that is a way to have budgetary savings. his budget has the usual games on budget gimmicks what we count as usual spending we don't have it explain. we'll pay doctors more in medicaid and now explain how we do it. if you strip all that away and look at a apples-to-apples comparison you will find that house

budget cuts, $4.6 trillion over the next 10 years and balances. the senate budget cuts, $600 billion over the next 10 years and the president's budget cuts 580 billion. since he raises about 600 billion in taxes at least, there is not a lot of spending control there. that is the heart of the issue. ashley: you mentioned, gimmicks, doug. what in your mind is the biggest gimmick in this proposal? >> well, i think you have to look at the fact that he is still counting $500 billion in reduces spending from stopping the wars in iraq and afghanistan. those have been stopped. it's done. and we do have ongoing problems in medicare to pay the doctors. we need to have real fixes to that. so, you know, this is an important moment because we have over $16 trillion in debt. the cbo says we have $7 trillion in additional deficits over the next 10 years unless we do something different. every budget should be scrutinized how different it is from that trajectory and

this is different but it is not a big number. ashley: well, listen, we have a house version. we have a senate version. we have the president's version. i mean how much common ground is in these proposals? what can republicans accept and what can democrats accept? >> remains to be seen. if you look at the president's budget, it is a unique budget in two ways. the first is came out last. that is not typically the case. that gave the white house the chance to do political triangulation to see where they want to end up. the second is the president put down in writing for the first time a significant change to entitlement spending programs in particular inflation index in social security. ashley: yeah. >> that is politically important. it is symbolically there is important moment. there is no money there. $25 billion a year over the next 10 years. we have enormous debts and deficits. that has to be a starting point for bigger changes on the spending side of the budget. the question is, will there be those changes? ashley: yeah, that's a good question. i'm interested, the cap on

itemized deductions. that will be a big flag, isn't it? >> right. the president for a long time said he wanted to get higher tax rates on higher income americans. he got that. now he says higher tax rates are not enough, i want to tax more of what you got? the question will he somehow get that if he doesn't come up with much more on the spending side. ashley: tracy and i were talking about carried interest, doing away with that and treating that as regular income. is that something republicans could live with do you think, a big concession? >> i looked at this carried interest issue for a number of years and the truth is, this is why we need fundamental tax reform. ashley: yeah. >> you know, carried interest itself, is a political football. it is not about good tax policy. the things the administration propose don't fit with any fundamental tax reform. so i think we should get attacks reform, have the tax code mean something again. have it support economic growth and raise the revenue that is genuinely needed for

the government. there is nothing about the debate over carried interest that has anything to do with that. ashley: that's a good point. very good point. douglas holtz-eakin. thank you very much. >> thank you. ashley: wee appreciate your comments. we'll talk about this a lot more as time goes on. we have the three plans as he pointed out, doug pointed out, the president's plan long overdue. so now we have at least somewhere, a starting point to look at all these issues but. tracy: you made an interesting point. you wonder if he did it on purpose, the president, so he can create his based on what was out there? ashley: maybe, maybe. it is about compromise. we'll see how much --. tracy: i'm always so cynical. ashley: you have to be these days. tracy: i know, i know. stocks hitting new records. is there anymore money to be made in this market? chad morganlander will share his picks. ashley: multiple agencies want to know how it happened and did anyone trade on the sensitive information that got out a little early? as we do every time this

time of day let's look how oil is trading for you. it is moving up. 94.57 a barrel, the surplus not as much as expected on the inventories. this pushed the price up a little bit on crude. we'll be right back ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars.

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tracy: the dow is on fire. it is up 1246 points. time to make money. -- 146 points. charles payne is here. we're talking about the surprise release of fed minutes. we're calling this is snafu. really? one guy with fat fingers. >> it calls into question greater issue of information flow who has access to it whether it is an accident or not. whether or not how unfair is it to investors and maybe, should they --.

ashley: just continues to create this era of people that have information that the general public or average retail investor can in the get. >> and that's true, that's true. i think, for me watching the tape, watching the market i see a large percentage of information that in my mind is leaked the day before. i think about 90% of most things are leaked ahead of time. tracy: you mean exand things like that? >> earnings upgrades and things like that. just uncanny how often this stop happens. ashley: 90% of the time? >> my own assessment. some people say it is pretty high. i want to separate one thing, guys, that kind of market shenanigans and being an investor in great american companies. there was an survey down by the general society survey. in 2010, only 11% said people had great confidence in banks or financial institutions. that is a good way to think. it carried over they weren't buying cheap american companies with great earnings potential at the same time whose stocks happened to be down. this is where i have the

problem with people can not separate the two. there are distinct disadvantages in terms of the trading stuff but i want to pull up one chart for you i know we have some other charts but let's look at general mills. general mills almost everybody knows, everyone eats cheerios, ever since 1990. look at that chart. scandals gone on through that time. drexel trading. guy who worked at the journal selling information on the street. enron scandal, mart thurt scandal and ibm scandal that led us to raj rajaratnam. the point if i'm an investor of this company, believe in the fundamentals, day-to-day, it should be noise that is filtered out. tracy: i think it is a brilliant point. at the same time when you're sitting at home, when you here all the noise, i don't care how smart you are, i'm not giving you my money. >> not giving me money. you're investing in great companies. tracy: i'm not taking it out of the mattress.

>> we pay more taxes to give them a social security check? i feel like it is backfired. wall street spent the last 50 years, longer so miss kal, like it is so scary. tracy: there is so much smarter than us. >> the only thing you can do is give me your money and let me take care of you. and i always said to people empower yourself. that is not necessarily that complicate thed. it take as little bit of elbow grease. you earned it. same thing i happen over and over again, how many people are waiting for the crash now? i'm waiting for the crash. i'm waiting for a 5% correction. i mean, --. ashley: america's most favorite spectator sport right now, waiting for the crash. waiting for the correction to our your point and charlie brady sent out a note earlier, walt disney and home depot, stocks we know and love hit five highs. >> and all-time highs. tracy: all-time highs as well. >> people use these products. they go to the stores. believe in the product. believe in the store. believe in those companies and wall street shenanigans

always will be there. i'm telling you right now they will always do this kind of stuff on wall street. ashley: very good. >> try to separate them as despicable as it is. ashley: still making money. charles, thank you. it has just gone quarter past the hour. let's check the markets. tracy said the market is up 145 points. let's go back to nicole at the nyse. >> ashley, tracy we're be taking a look at couple of teen retailers. anybody has teenagers and knows any teenagers knows the group can be very fickle. let's hear what the analysts say as we look at some year-to-date charts. aeropostale which actually has been a winner year-to-date, goldman sachs says enough is enough. they're cutting this one and putting it into a sell from a neutral. one of the reasons they're doing it, they said there is a shift in the competitive landscape. there are facing challenges. cutting their per share view and merchandise changes could make things worse. now american eagle outfitters which actually has been a mover to the downside, you know what? now piper jaffray saying, you know, we'll beef up on

this one. we're raising it to overweight from a neutral. solid demand trajectory going into 2013 here. looking good. we'll see what happens here. you have a tale of two teen retailers. back to you. ashley: all right, nicole. thank you very much. we'll be back in 15 minutes. tracy: tweens tweerns are very fickle at least in my house they are. which stocks are up big this year? should you sell in may and go away? you have three weeks to make the decision. chad morgan lander will weigh in next. ashley: let's see how some of the foreign currencies trade against the green back. the pound is about even at 1.52, 1.5321 but the euro edging down slightly. but the dollar up against the canadian dollar and peso, guess what? the japanese yen, weaker again. we'll be right back. ♪

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>> it is now 22 minutes past the hour. i'm heather nauert with your fox news minute. in the gun control battle, a bipartisan compromise is now on the table. senator, republican senator pat toomey of pennsylvania and democrat joe mansion of west begin what -- virginia,

would include background checks at gun shows and most online. this isn't as president obama's gun control proposes but may have enough support to pass the senate. police say that the 20-year-old student suspected in yesterday's stabbing spree at lone star college told them that he had fantasized about stabbing and killing people since he was eight years old. dylan quick is accused of randomly stabbing 14 people with a small razor knife. he is charged with aggravated assault with a deadly weapon. american and south korean troops have increased their alert levels. the south korean foreign minister warned that north korea could launch a mid-range missile test anytime soon in his words. defense secretary chuck hagel said you prepare for every contingency and we are. those are your headlines. tracy back to you. >> thank you so much, heather nauert. see you soon. >> we have breaking news for you. we're digging through jpmorgan ceo jamie dimon letter to shareholders and

we wanted to bring you key headlines. dimon saying the london whale cost the company money and was quote, completely embarrassing. he goes on to say the controls and regulatory agenda is top priority for the company of the looking at the broader can my the dimon describes the u.s. economy as, quote, fairly healthy but reiterating america is in a good position to succeed but he also goes on to warn that we should be prepared for bad outcomes in europe. dimon is saying, too big to fail remains under dodd-frank and jpmorgan, quote, is collaborating with regulators to end it. that is some of the highlights so far from the letter to share holders from jamie dimon. tracy: shouldn't surprise anybody, right? ashley: no. >> stocks are trading near all-time highs with the dow posting its largest intraday gain in over a month, with fresh earnings season upon us. where is the best place to put your money? joining us now, chad morgan lander at stifel nicolaus. before we get to your picks let's talk big picture here. you originally had a s&p 500

year-end price target of 1575. s&p is at like 1587 today. what happens there? you blow through it and find a new one? >> no, we'll stay with 1575 price target by year-end. it seems the financial system is riding and surfing this wave of liquidity courtesy of the bank of japan, federal reserve and ecb the u.s. economy is moving along gradually at some what are of a lackluster rate. then you have earnings season we're coming upon and earnings this quarter should be up around 2% year-over-year. which isn't really a, ebullient type of earnings picture. there are types of opportunity in the marketplace we can get to but now one has to move up the quality spectrum within their portfolio. tracy: we've had so many people on calling for a pullback, a correction, 5%, even anything but it is so hard and our senior editor charlie brady supplied us with a great chart. when you see how the fed

balance sheet and dow walk hand in hand and there is no letup anytime soon why would anybody want to get out of this market right now? >> you may want to overweight equities but you want to be in quality. yes, the federal reserve will continue to monetize their debt and increase their balance sheet in 2013. but at a moment's notice when the fed pivots and decides they won't monetize debt, the markets may at that point in time may have a little bit of instability to them unless the economy is in full-fledged recovery, that is self-sustaining and we're just not there yet. tracy: not even close, right? >> no, we're not. tracy: this sell in may go away thing you don't buy into that either? >> i don't buy it into. you want to in your portfolio stay balanced and move up the quality spectrum and buy quality companies with profitable and well-capitalized. on the bond you want to do more of the same. move from higher yielding

debt securities to more quality. you want to move your maturities down because --. tracy: shorter term. >> eventually rates will start to kick back higher again. >> suggest a duration of four to five years on that investment grade corporate bonds. let's talk about the companies though that you're suggesting. big tech, cisco, microsoft. you still like those guys? >> consistently growing, consistently profitable and well-capitalized. tracy: cisco i want to point out one of the dow's best performers so far this year. does it still have room to go? >> absolutely. trading $21 a share. it has $4.65 of cash on their balance sheet. very little debt. will earn around $2 per share. price target around 25. plus you get dividend growth with the dividend yielding around 2%. tracy: let's talk about triumph. it is an aviation industry pick, huh? >> correct. you have airbus and you have boeing. you know all the orders are coming in from the airline industry. they are an aerospace parts company and they are doing very well. the price target on that is

$90 a share. again consistently growing company on the top line. tracy: right. >> operating margins that are very consistent and they have an order backlog. so you know that the revenues will be there. tracy: boeing keeps breaking down. i guess they will be in business forever, right? >> absolutely. tracy: let's talk about accenture. this is consulting spin-off from arthur andersen back years ago. consulting i guess the way to go. you don't have to pay benefits. >> similar to ibm. they're a consulting company that focuses on corporations and in the technology world. they're operating margins on this company have been moving higher in a very steady manner. they will continue to do that for a multitude of years. as well revenue growth will be very steady at five to 6%. and again, you will start to see a dividend growth rate in this company over the coming years. tracy: that is what you need. quality picks, good dividends. chad, thank you so much. >> thank you for having me. tracy: for crossing the border from jersey. so far. ashley: brought is his

passport, thank god. ron cohen says the president's budget puts a squeeze on his industry. he will explain coming up. dozens of banks accused of misusing money that was supposed to help small business. you won't believe what they spent it on instead. details ahead. first a look at some of today's winners as we head to break on the s&p. the dow is up 104. another big day on the s&p. we'll be right back. @

ashley: 90 minutes until the close. take a look at the dow 30. lots of green, lots of all-time highs today.

disney, home depot, travelers to name a few. on the downside, travelers going back a little bit. another big day for the market although we are off of our session highs. nicole petallides at the nyse. nicole: that is right. not far off from dow 15,000. we have gotten record highs come about 126 points, about 0.9%. the s&p 500 gaining over 1%, and the tech heavy nasdaq the best of the bunch. all three have hit intraday record highs. the nasdaq multiyear high. take a look at family dollar. family dollar down. they came up with their quarterly numbers, higher revenue. although same-store sales missed analyst estimates. the company cut the full year view, that is not good news for

family dollar. it certainly is a sea of green. ashley: nicole, thank you very much. some breaking news for you. oil closing up at $0.44, $94.64 per barrel. today marks the third straight day of gains for oil. back up again. tracy: sure is. president obama's budget includes proposals drawn fire from both sides of the aisle. rich edson on capitol hill with reaction to the president's spending plan. rich: the most amount of disagreements we have seen it on the proposal dealing with what is called change cpi. changing growth in social security over time. the reaction from the hill, democrats like it, republicans do not. house republican leader nancy pelosi said it isn't offered compromise republicans, she wants republicans to step up in kind. john boehner said the president

got his tax cuts in january and has backtracked for what it offered. the president offering closing $580 billion worth of tax loopholes from deductions. what does that do to tax reform? he says when it comes to the debt ceiling he is going to use that to fight for tax reform rea.>> any avenue to advance tax reform, i am on that street. it could be an opportunity to get the kind of process and procedures to move tax reform through the congress. it is difficult to have a tax reform bill deposited in the debt limit in total. but again, think it is opportunity i will pursue. >> said it least it is a positive sign the president put a placeholder for tax reform in his budget proposal but acknowledges the two sides

aren't terribly far apart. asking for a trillion dollars in new revenue taking almost $600 billion in new revenue. republicans want to take those, eliminate or reduce them, and then use that to lower rates, so we are a long way off here. tracy: not even close. ashley: thank you very much. community banks weren't exactly honest hand back the top day about loans. tracy: shocker. a nice way of saying they lied. so remember the treasury program to encourage small banks to lend to small business, right? that was the thing to save our economy. small banks use the money to repay tarp, repay their own bills. it went repaying tarp. why would you be so concerned about repaying the federal government? along with a cam restriction is

on ceo pay. once you pay that off, you could go back, raise your salaries. tracy: this is how the whole thing started. give me money, no strings attached, who cares how you use it. why would this be any different? speaker there was a heavy suggestion you're supposed to use it to lend to small business to get the economy going. >> my kids have figured that out already. >> i can't get over this story. tracy: so there are no loans to small businesses basically. >> no loans. i guess you can look at the bright side and say at least all the money wasn't used. tracy: again, it is because they made these rules up, shoot first, ask questions later. nobody thought it through. ashley: now we see the arrows falling away. >> every government policy has these unintended consequences we only find about later.

let me tell you what we have on tonight. we have been covering this, we brought viewers a story about the ntsb ruling in the case of a helicopter pilot texting 18 minutes before the crash. they say texting played a role in this. next we will tell you about a pilot drunk, too much to drink, getting into the seat to pilot a plane, we will tell you all about that tonight. ashley: have ever seen a denzel washington movie where he flies the plane upside down? tracy: how long was that text? doesn't it take a long time to land a plane? speaker there were many text messages. somebody he was going to have dinner with later, many text messages with a woman.

the helicopter actually went down because it ran out of gas but regulators are saying texting played a role. tracy: thank you very much. don't miss "the willis report" tonight on fox business. tracy: a new twist in the family drama cablevision weeks after separating from his wife, actually giving her more duties at the company. details next. tracy: time to check the treasuries. we will be right back. (announcer) scottrade knows our clients trade and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody.

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and with responsive, dedicated support, we help you shine every day of the week. adam: i am adam shapiro was your fox business brief. a sea of green on wall street. the dow and s&p 500 are soaring to new highs. the dow up more than 130 points. u.s. postal service reversing its plan to saturday mail delivery. agencies as congress left them no choice prohibiting the implementation of a new delivery schedule. they lost $16 billion last year and hoping the five-day mail delivery would've saved $2 billion annually. actress betty white named america's most fueling deliver

celebrity. marching her third time at the top of the list. that is the latest in a fox business giving you the power to prosper.

tracy: cablevision is a family business. now he has promoted not one, but two family members to bigger jobs. dennis kneale has the details now. dennis: cablevision ceo gave a big promotion to his wife never mind the couple separated a couple of months ago. he runs the family controlled company and owns the company. he also promoted his brother-in-law to a new strategy job, but before the critics

start talking, keep in mind a couple of things. he is a well-regarded 22 year veteran and build the brand because customers hated cablevision itself and turned it into an internet powerhouse now 3.1 million internet subscribers, 54% of the customer base. an industry high penetration rate. 100,000 wi-fi hotspots. cablevision alone has 75,000 of them. she did that. joining in 1990 rows up to the sales marketing, met jim dolan and married him in 2002. gaining prowess as others have left. now this promotion to president of octomom services. still, a lighter among media stocks up 8% in the past year. the slowest growth of the media players. keep in mind it is a family run business.

telling me it should come as a surprise to absolutely no one that the dolan family continues to be the top levels of the benefit of the company as it has been since the company was founded 40 years ago. tracy: so is the brother-in-law her brother? >> now. ashley: the bottom line is you should be related to chuck dolan. tracy: absolutely. >> the same structure that rupert murdoch has for news corp., our company. a structure similar to the "wall street journal" and dow jones have for many, many years. and even google has that kind of ownership structure given the three top execs that kind of control. so when you have that, it is yours to do with as you will. tracy: pretty cool, thank you very much. ashley: it is a quarter until, time for stocks as we do every 15 minutes. let's go down to the new york

stock exchange. mark is our guest. i offer the question to the fundamentals really matter at this point? is all about the central banks, right? >> they eventually matter, but a lot of focus on the central banks and this market is technically driven. lasted 50 months so far from the 2009 lows, the eighth longest ride so far in history. being of over 140% since '09. a lot of technical factors are driving the rally right now. one thing i would point out this advance decline decline continues to be near all-time highs. in the past those worried about the market pullback in 2007. in 2000 we saw this drop-off in fleet before the market peaks. it is also worth to point out the s&p has risen to new all-time highs, but in real terms nowhere near all-time highs, i was a setback in 2000.

looking at non-inflation terms and non-dollar terms, inflation-adjusted, we still have it you have to go to get to those highs. ashley: you're absolutely right. thank you so much. tracy: since sequester cuts have taken a big right out of the big pharma budget, telling us next with will mean for cancer research. ashley: first, take a look at some of the winners on the nasdaq. take a look a as we head to the break. one of those monster beverage, another monster day. we will be right back.

tracy: president obama's budget proposes $400 billion in medicare savings by cutting payments to drug companies and providers. just the latest hit the industry which is totally getting squeezed by the sequester cuts and obamacare. here to tell us what this means for health care and biopharmaceutical industries, ron cohen, founder and ceo. glad you're back. last time you ar were here you e worried about what the budget cuts were going to do to the fda. now sequester kicks in, we have the budget cuts, now what? >> still worried. $318 million out of the budget necessary for companies like ours to bring or medications to market. for you, for me, for the family members who need these medications to help with our

diseases. that process will be slow. tracy: the fda approves it and we give it to the people who need it. they were understaffed to begin with, now there is a hiring freeze. what does this do to the pipeline, how does it come to the market? >> there is a hiring freeze, slows down the whole pipeline. the fda cannot keep up with what they need to do and that means our drugs don't get the market as quickly. i am pleased to see in the current budget proposal the proposal restores funding to the fda, responsible for medical research. as far as that goes, that is okay. there is a lot more that is not okay about the proposal. tracy: 400 billion cuts to medicare, 140 billion are payments to drug companies. what happens to that? >> this effectively is a type of

price control targeting a particular industry, biopharmaceutical industry. price controls don't work. they have never worked, we can look historically every time they have been tried, what they do as one or two things or both. they reduce the amount of product were trying to control the price of because you are not paying for it so you are just incentivizing. in this case it is medications. medications of the future we have to treat our diseases effectively, and you're going to slow down the industry to deliver those medications. number two, you're not really saving anything because you're arbitrarily saying we will control the prices of this product and the price is expand elsewhere. to the consumer paying for commercial insurance premiums that will go up as result. to me it is like having, i am a physician, it is like having a skin cancer on your arm and the responses let's put a band-aid on it.

for the short term we did a great job, but over time he won't have done a great job, the patient will lose their arm or their life over time. so this is a short-term feel-good kind of fix without thoughtfulness of creating a real solution. tracy: is a trend down in washington, unfortunately. let's talk about how this patent protection case affects the rest of the world. >> the supreme court in india held a patent decision to deny a patent to a major drug company for one of the most exciting breakthrough drugs of our time. it has taken leukemia, which used to be an instant death sentence for people it has turned it into a care in many cases or long-term manageable disease. it is an amazing drug. 40 other countries have issued a patent on it including china and russia and taiwan. i-india decided not to give a patent. tracy: why? >> the cynic would say they have

a major generics industry and wanted to protect that industry from branded competition and it is shortsighted because they're already giving 95% in india, they were giving it away free because they realize people couldn't afford it there. so instead of saying thank you, they said no, we will not give you protection. and if you don't honor the work and creativity people put into inventions, you're not going to get inventions. tracy: we have to leave it at that. that is exactly what is happening. come back, the conversation will continue. ashley: get this, get ready for a busy hurricane season. the atlantic hurricane season expected to be above average with 18 tropical storms, nine of which will reach hurricane strength. the average season brings about 12 tropical storms, six hurricanes, two major hurricanes.

this season this is what they predict, four major hurricanes with sustained winds 111 miles per hour. hurricane season by the way runs from june 1 to november 30 so we have about seven weeks to go to batten down the hatches and watch out. tracy: we can't afford more. ashley: we certainly can't. the gulf coast, florida. tracy: president obama unveiling the budget plan today. coming up in the next hour, director of the national economic council. liz claman will take us through the last hour of trading. the dow up 143 points. "countdown to the closing bell" is next, don't go anywhere. are you still sleeping? just wanted to check and make sure that we were on schedule.

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(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. join us at projectluna.com ♪ liz: the battle begins over the budget. what's in, what the outcome and how it will affect you and your